Sengkang Square site attracts top bid of S$383.3m

A WELL-SITED residential plot in Sengkang Square has attracted five bids – weaker interest than industry experts had expected. EL Development put in the top bid of $383.3 million, or $527.65 per sq ft per plot ratio (psf ppr).

White Haven Properties came in second with a pitch of $348 million, or $479.02 psf ppr. The lowest bid, from Singland Development and UOL Venture Investments, was $301.8 million, or $415.42 psf ppr.

Put up for tender on 16 April and slated for condo or flat development, the Sengkang Square/Compassvale Drive site measures 22,497.6 sq m and could yield around 710 units. With prior approval, the 99-year leasehold site may also be developed into a combination of flats and strata landed houses.

The successful developer can build condominiums or flats on the 22,498 sq m site, or seek approval for a combination of flats and strata-landed homes. Credo Real Estate executive director Ong Teck Hui had expected the site to draw eight to 12 bids, given its proximity to Sengkang MRT station and Compass Point.

In addition, he noted: ‘It’s a firm top bid… surpassing that for The Luxurie site next door which was sold in March 2011 for $502 psf ppr.’

Chia Siew Chuin, Director of Research & Advisory at Colliers International, noted that response for the site was “relatively lukewarm” compared to the 12 bids received for a residential site at Boon Lay Way (Jurong Gateway) on Tuesday. Colliers said this was due to the availability of many well-located condominium sites whereby the tenders will close next month.

“Nevertheless, EL Development Pte Ltd put in an optimistic bid, topping the five-way tender at S$383.33 million or S$527.65 psf per plot.”

CBRE executive director (residential) Joseph Tan said ‘the quantum of the bids signifies developers’ confidence in mass-market housing and in sites that are located near MRT stations’. He noted that the top bid ‘translates to a break-even cost of $900 psf to $950 psf’.

EL Development managing director Lim Yew Soon said potential buyers can expect a condo comprising 14 blocks of 15 storeys each. He added that the selling price would be around $1,000 psf to $1,050 psf on average.

Meanwhile, the Urban Redevelopment Authority (URA) has announced the final tender results for the Boon Lay Way (Jurong Gateway) site. MCL Land Limited won the tender after offering a top bid of S$369.388 million, which works out to around S$705.10 psf ppr. The 99-year leasehold site is estimated to yield 590 units.